$[6$ Marks$]$

Lawrence $($Pty$)$ Ltd is a manufacturer of various steel products. The company is considering additional plant investments at the moment. The company has been successful for many years, with the results of $2024$ being reminiscent of its performance.

As the Cost Accountant of Lawrence $($Pty$)$ Ltd$,$ you compiled the following statement of Comprehensive Income for the year ended $31$ December $2024$

$2024$ R$000$

$2023$ R$\text{'}000$

Revenue $($all sales are on credit$)$

$9799$

$9460$

Cost of sales

$(6100)$

$(6200)$

Gross profit

$3699$

$3260$

Operating expenses

$(1145)$

$(1118)$

Profit from operations

$2\mathrm{.}554(204)$

$2142(192)$

Finance costs

Profit before tax

$2\mathrm{.}350$

$1950$

Income tax expense

$(535)$

$(415)$

Net profit for the year

$1815$

$1535$

Operating expenses

$340$

$330$

Cost of material used

$5100$

$5200$

Dividend declared and paid

$425$

$317$

Number of ordinary shares issued

$317$

$317$

Required:

Calculate the following ratios for $2024$ and $2023$: Show all formulas and calculations.

$4\mathrm{.}1$ Net profit percentage

$4\mathrm{.}2$ Gross margin